Restoration Hardware Holdings Earnings: Here’s Why the Stock is Rising Now

Restoration Hardware Holdings (NYSE:RH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.19%.

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Restoration Hardware Holdings Earnings Cheat Sheet

Revenue: Rose 38.29% to $301.34 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Restoration Hardware Holdings reported adjusted EPS income of $0.06 per share. By that measure, the company beat the mean analyst estimate of $0.04. It beat the average revenue estimate of $299.13 million.

Quoting Management: Carlos Alberini, Chief Executive Officer, said, “We are extremely pleased with our first quarter performance and financial results. During the period, we delivered an increase in net revenues of 38%, comp store sales growth of 41%, and a significant improvement in profitability as we continued to invest in our infrastructure and new businesses to support our growth.”

Key Stats (on next page)…

Revenue decreased 24.3% from $398.06 million in the previous quarter. EPS decreased 90.63% from $0.64 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.39 and has not changed. For the current year, the average estimate has moved up from a profit of $1.31 to a profit of $1.40 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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